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Aviva life and pensions sales up 16% in 2010

Aviva has announced increased life and pension sales of 16 per cent to £10.3bn and a 19 per cent increase on total long-term savings to £11.8bn in 2010.

Announcing its annual results for the year ending December 31, 2010 today, Aviva reports a 35 per cent increase in pre-tax profits to £2.44bn, up from £1.81bn the year before.

The insurer has grown its UK market share for the third consecutive quarter to 11.1 per cent in the third quarter of 2010, up from 9.7 per cent in the same quarter of 2009.

Operating profit before tax increased 26 per cent to £2.55bn and total sales increased by 4 per cent to £47.1bn.

Aviva Investors, its global asset management business, grew assets under management by 4 per cent to £260bn. Operating profit was down from £115m in 2009 to £100m in 2010. Net external sales were £2.4bn in 2010 compared to outflows of £236m in 2009.

Aviva says it is well placed for the retail distribution review and says 8,600 advisers have now joined its Adviser Academy.

In 2010, Aviva announced arrangements with Santander and Royal Bank of Scotland. The results show the insurer has added life insurance, critical illness and income protection to its existing general insurance distribution agreement.

Group chief executive Andrew Moss says: “”Over the last few years, we’ve grown the business, significantly reduced costs and strengthened the balance sheet. As a result, we’ve created a good platform for the next phase of growth.

“We have a clear strategy and we are meeting our customers’ needs. By focusing on what we do best in the markets where we have strength and scale, we will continue to prosper in 2011.”

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Comments

There are 10 comments at the moment, we would love to hear your opinion too.

  1. Goodness knows how.I get no local support, their products strive for mediocrityand their servicing is the worst in the industry: and thats up against some very stiff competition!

  2. My experiences are quite the opposite!

  3. Having seen a huge increase in direct advertising would it be cynical of me to ask Aviva where the business came from? was it direct or Via the IFA? 8600 IFA’s signed up to the Aviva accadamy for RDR, Stephan Gay (ex Aviva) running AIFA, David Ross Head of Media Relations at Norwich Union now the spin Doctor for the CII. I suppose I am just imagining this stuff up! Or maybe there is a bigger picture!

  4. Just who are the misguided IFAs that place business with Aviva? Or is the increase a result, as suggested by Rod Leonard, of direct advertising? Aviva is probably the worst life office for customer service, although Scottish Equitable are every close second, and I certainly wouldn’t consider them for new business. As for the chief executive’s comment that “we’re meeting our customer’s needs” – well, I’ve got news for you Mr Moss, if IFAs are your first line customers, you quite definitely are not.

  5. If you check the figures I think you`ll find that the vast majority of business came overwhelmingly from advisers – the direct idea is an urban myth”

  6. I see Aviva’s life and pensions sales have increased by 16%.I am still not reading any statements from your company announcing that it is reducing all charges with immediate effect.The UK pension investor is paying some of the highest charges in the world.I challenge you Aviva to lead the way in the pension industry by reducing all charges.Time to give something back to your pension investors instead of take take take all the time.

  7. Hugh Hessing - Aviva UK Life Customer Service Dire 4th March 2011 at 2:19 pm

    Throughout 2010 we have worked continually to improve the service experience for both distributors and customers, radically reducing processing times in some areas and continually increasing the number of queries we are able to address at the first point of contact.

    We believe this is now having a real impact on how our service feels to customers.

    We do however recognise that we still have some way to go, and look to respond and act on feedback from all customers. If you are able to provide specific details of your service experience we will pick these up with you on an individual basis.

  8. David Kawolski 8th March 2011 at 7:22 am

    SOMEONES DOING WELL LETS BASH THEM. As an adviser in the industry most of the above comments make me sad I am doing quite well at the moment and part of this is down to the support I get from the life offices. I think a lot of what is going wrong at the moment with the economy has a lot to do with attitude. You can sit typing negative comments and grumbling about your lot in life or you can be positive share in a large companies success and move forward.

  9. My main area of interest is wrap. Aviva is notorious in the industry for having spent the most on wrap (£200 million?) over the last 8 years, and being the least successful. Much talk in the results about core strengths and ‘de-emphasising’ non core – i.e. heading for the exit. Will Aviva be the next after Macquarie to throw in the towel on wrap?

  10. Hugh, would you like to answer the question, and give us the facts of where this increase comes from???
    David Kawolski, If I am wrong I will appologise. But had plenty of evidence that Aviva often write to clients and do not copy in the IFA. Look at the amount of direct advertising they do !

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